Who’s up for a trend trade today?
If you are, then you won’t want to miss EUR/CAD pulling back from its August highs.
Check out this setup on the 4-hour time frame!
EUR/CAD 4-Hour Forex Chart by TV
EUR/CAD has pulled back from its August highs after getting rejected not once, but TWICE in the last few days.
What makes the pair interesting today is that it’s about to hit some key potential support zones.
The 50% Fibonacci retracement level, for example, lines up with the 1.4650 minor psychological handle.
In addition to that, EUR/CAD’s current levels are also not too far from the ascending channel support that hasn’t been broken since late June this year.
Will EUR/CAD see enough buying pressure to extend its uptrend?
A clear bounce from the 1.4625 – 1.4650 area could bump EUR/CAD back up to its 1.4790 August highs.
We could even see a trip back to the 1.4870 July highs if there’s enough bullish momentum!
If you’re not confident that EUR can keep on gaining pips against CAD, then you can also bet on a possible downside breakout.
Look for sustained trading below the 1.4600 psychological level, which could entice EUR/CAD bears to drag the pair to previous areas of interest like 1.4500 or 1.4450.
Whichever bias you end up trading, make sure to use stop losses and to follow a detailed trading plan!